Johannesburg executives' pay rises despite service declines

Executives in the City of Johannesburg are earning up to nearly R5 million annually, exceeding national benchmarks, as the city's core services like electricity, water, and waste removal continue to deteriorate. An analysis of budget data shows pay increases averaging 26% since 2022, far above inflation and public-sector guidelines. This comes amid revenue shortfalls that hinder service delivery.

The City of Johannesburg faces mounting criticism over executive compensation that has surged even as residents grapple with failing services. According to an examination of the city's medium-term budgets from 2022 to 2026, senior managers and heads of municipal entities have seen their total remuneration packages rise steadily, with several surpassing R4 million.

Notable increases include an 86% jump for the Johannesburg Social Housing Company CEO, 75% at Metrobus, 55% at the Johannesburg Roads Agency, 61% at City Power, and 48% at the Johannesburg Development Agency. Overall, executive pay has grown by about 26% since 2022, outpacing inflation and the 3.3% guideline for public-sector increases.

National regulations from the Department of Co-operative Governance set an upper limit of R4,248,980 for municipal managers and R3,399,184 for senior managers in large metros like Johannesburg. For comparison, President Cyril Ramaphosa earns R4.2 million. While the city maintains that its municipal entities are not bound by these limits and that all pay aligns with legislation, critics highlight the disconnect.

Julia Fish of the Johannesburg Civic Alliance remarked, “What we are seeing in South Africa is state-led inflation... due to skewed performance management structures.” She noted that such pay hikes contribute to double-digit tariff increases, making services unaffordable.

The city's revenue collection stands at 83% of billed amounts, missing the 94.7% target and creating a multi-billion-rand gap. DA councillor Christopher Santana called the structure of 13 entities unsustainable, urging a review to link compensation to performance and fiscal health.

City spokesperson Nthatishi Modingoane defended the practices, stating they follow national frameworks and ministerial determinations, with a 3.3% increase approved for 2023/24. As of November 2025, no new limits have been gazetted for the following year.

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